FinCalC: What You Should Know Before Calculating Your Income Tax for FY 2018-19 | NEW BUDGET 2018 [VIDEO]

Budget 2018 has made some changes in the calculation process of Income Tax, which will be applicable for FY 2018-19 (AY 2019-20). From Education Cess to introduction of New Standard Deduction, the changes made in Budget 2018 are balanced from all perspectives.

Download FREE Calculator - FinCalC

Let's now see what are the changes made in Budget 2018:

YouTube Channel - CLICK HERE

1. Introduction of Standard Deduction:
   Budget 2018 has made one very important change for Employees and Pensioners in India, to help them reduce their Income Tax in FY 2018-19. A Standard Deduction of Rs. 40,000 will be allowed while calculating Income Tax of Employees and Pensioners. Standard Deduction is a replacement of Medical Reimbursement (Rs. 15,000) and Transport Allowance (Rs. 19,200), which brings to a total of Rs. 34,200, which was applicable in previous years. Instead of these 2 allowances, a Flat Deduction of Rs. 40,000 will be applicable to all Employees and Pensioners before calculating their Income Tax for the FY 2018-19.


2. Increase of Education Cess to 4%:
   This is something that we need to worry about. Previously, Education Cess was 3%, which is now changed to 4% for FY 2018-19. For those who are unaware about this term, Education Cess is a small amount of charge that you pay after calculating your Income Tax. So for FY 2018-19, it will be 4% of your Income Tax, and this small amount will be added to your Income Tax to calculate your Total Income Tax.


3. Increase in Section 80TTA limit for Senior Citizens up to Rs. 50,000:
   This is a good news for the Senior Citizens of our Country. Section 80TTA include the exemption of Interest Income earned from Savings Account. This limit was previously Rs. 10,000 for all age categories. But for FY 2018-19, this limit has been increased to Rs. 50,000 for Senior Citizens (only). They can apply for an exemption of up to Rs. 50,000 under Section 80TTA, as their Interest Income earned through Savings Account, while calculating their Income Tax for FY 2018-19.

So these are some of the major changes made in Budget 2018, that you should consider while Calculating and Planning for your Income Tax.

Follow this Blog and our YouTube Channel for more updates on Financial Planning. Also, DOWNLOAD FinCalC APP - our FREE Android Calculator.

Feel free to comment in case you have any queries. Stay Tuned.